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Observations on Buffett’s 2012 Letter to Berkshire Hathaway shareholders

Following on from my previous posts, given that equity markets are at post-crisis highs currently, I believe it is a useful exercise to sit back and take stock of what this means for me as I prepare to build a portfolio based on value investing principles. Part of such an exercise should involve a careful … Continue reading

Thoughts on investment selection in a richly priced market

In my last two posts I discussed my views on current stock market valuation, and observed that stocks are currently priced at previous peak levels, supported by extraordinary (and abnormal in economic terms) interventionist monetary policy and temporarily and artificially inflated profit margins. As such, I concluded that this is a dangerous market, wrought with … Continue reading

Thoughts on current stock market valuation continued

In my previous post, I outlined why I believe the stock market is currently overvalued based on an examination of what I feel the primary drivers of stock prices have been recently. I concluded that stocks (as measured by the S&P 500) are overvalued as earnings are artificially inflated (and therefore not indicative of normal … Continue reading

Current stock market valuation and the implications for investment

“Prudence suggests that he have an adequate idea of stock market history, in terms particularly of the major fluctuations in the price level and of the varying relationships between stock prices as a whole and their earnings and dividends. With this background he may be in a position to form some worthwhile judgment of the … Continue reading

The Inaugural Post

Welcome to Independent Value, a value investing blog that will serve as a public record of my personal investment portfolio. On this blog I will write about my own thoughts on finance and investment, my analysis underpinning my investments, and provide updates on my investment performance on a regular basis. I write this inaugural post at a … Continue reading